Invest In Bitcoin – How To Invest In Bitcoin For Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
If you’re thinking about investing in Bitcoin for the first time – you’ll be pleased to know that the process has never been easier.
It’s now just a case of registering an account with a reputable cryptocurrency broker, depositing some funds with a debit/credit card or e-wallet, and then deciding how much you wish to invest.
In this beginner’s guide, we show you how to invest in Bitcoin in under five minutes with a regulated and low-cost broker!
Table of Contents
#1 Broker to Invest in Bitcoin – eToro
1
Mobile AppYes
How To Invest in Bitcoin – Choose a Broker
One of the most important steps to consider when learning how to invest in Bitcoin is your choice of an online broker.
Below you will find a quick overview of the best Bitcoin investment brokers operating in this space.
- eToro – Overall Place to Invest in Bitcoin
- Webull – Trade Smarter in Minutes with No Commissions
- Coinbase – Best Way to Invest in Bitcoin for Beginners
- Binance – Best Place to Invest in Bitcoin for Asset Diversity
- Crypto.com – Buy, Sell, and Trade all your Favorite Coins in One Place
- Gemini – Secure, Trustworthy, and Regulated Bitcoin Exchange
- Kraken – Invest in Bitcoin, Ethereum, and More with Ease
- Coinmama – Get Started with Bitcoin, Ethereum & Litecoin
- Bitstamp – Crypto Trading on Steroids
- Bisq – Decentralized, Anonymous, and Secure
We review the above Bitcoin investment brokers in great detail further down in this guide.
How to Invest in Bitcoin – A Quick Guide For 2023
Before reading our guide in full – check out the quickfire steps below. These simple four steps will show you how to invest in Bitcoin in under five minutes with eToro – a regulated and low-cost brokerage site!
- Step 1: Open an Account with eToro – You can open an account with eToro with ease. All you need to do is provide some basic personal information – such as your name and home address. You’ll also need to provide your email address and mobile number.
- Step 2: Upload Your ID – eToro is registered with FINRA and the SEC – so all new account holders must upload a copy of their ID. This can be a passport, driver’s license, or any other government-issued ID that you might possess. The document will be verified instantly.
- Step 3: Deposit Funds – Now you can make a deposit into your eToro account. The minimum at eToro is just $50 for US residents and there are no deposit fees on USD payment methods. You can choose from a debit/credit card, Paypal, Neteller, or bank transfer.
- Step 4: Invest in Bitcoin – Now that you have funds in your eToro account – you can search for ‘BTC’ and click on the ‘Trade’ button to populate an order box. Finally, enter your investment stake ($25 minimum) and click ‘Open Trade’ to complete your Bitcoin investment!
By completing the above steps at eToro – you’ve just bought Bitcoin on a spread-only basis. There is nothing else for you to do, as eToro will store your BTC tokens on your behalf. This means that when you eventually decide to sell – you can do this instantly without needing to transfer the tokens from an external wallet!
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
1. eToro – Overall Best Place to Invest in Bitcoin
eToro is a clear winner when it comes to the best place to invest in Bitcoin. This super-popular Bitcoin brokerage site was first launched in 2007 and now serves over 23 million investors.
There are several key reasons why eToro continues to lead the way in this industry. First and foremost, eToro arguably holds the strongest regulatory framework of all the cryptocurrency brokers that we came across.
Not only is the broker regulated by the FCA (UK), ASIC (Australia), and CySEC (Cyprus) – but it is registered and approved by the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business in the US. This ensures that you can invest in Bitcoin safely and without fear of being scammed.
We also found that eToro is popular with investors in the US as it offers extremely low fees. As we cover shortly – the likes of Coinbase charge 3.99% on debit card purchases. But, at eToro, US citizens depositing in US dollars can fund their accounts on a fee-free basis.
When it comes to trading commissions, eToro operates on a spread-only basis. This starts at just 0.75% in the case of Bitcoin – which again, is very competitive. What we also like about eToro is that the brokerage site is suitable for newbies and experienced investors alike.
For example, you only need to meet a minimum deposit of $50 and a stake of just $25 on each Bitcoin investment. This is not only ideal for those on a budget, but this super-low minimum allows you to dollar-cost average your crypto purchases.
In terms of supported markets, eToro offers a sizable number of leading digital tokens. In addition to Bitcoin, this covers everything from EOS, Ethereum, and Cardano to XRP, Litecoin, and Dogecoin.
eToro is also adding a number of decentralized finance (DeFi) coins to its ever-growing list of supported assets – which currently includes the likes of AAVE, Enjin, Decentraland, and Yearn.Finance. Much like Bitcoin, these alternative crypto assets also come with low minimums and competitive spreads.
But perhaps the most appealing feature of the eToro platform is its Copy Trading tool. In a nutshell, this is an innovative feature that allows you to copy an expert cryptocurrency investor.
For instance, if your chosen trader allocates 20% of their capital into a Cardano and EOS buy order, you will automatically do the same.
You can also engage with other investors at eToro through the platform’s Social Trading tools. This includes the ability to ‘like’ and reply to comments – much like you would on Facebook.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Registered with FinCEN and regulated by the FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 23 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
2. Webull: Trade Smarter in Minutes with No Commissions
Looking to make some serious profits in the Bitcoin market? Then you need Webull. Webull’s online trading platform offers a wide range of features and tools to help you succeed, plus competitive rates and no commissions on each trade. So sign up today and get started on your path to financial success!
Investing is intimidating for a lot of people. But, it doesn’t have to be! With Webull, you can invest in stocks, ETFs, options, and cryptocurrencies without paying any fees. Plus, Webull’s easy-to-use platform makes it simple to get started. So what are you waiting for? Sign up today and start investing like a pro!
With stocks, ETFs, options, and cryptocurrencies available, Webull has something for everyone.
Looking to make some trades without all the fuss? Look no further than Webull! Webull’s desktop app is perfect for anyone looking to make successful trades. With its sleek desktop interface, Webull makes it easy to stay on top of your investments.
Looking to invest in Bitcoin but worried about the fees? Webull is the only name you need to know! Webull’s platform does not impose commissions on cryptocurrency trades, so you can get the best deals without breaking the bank. Plus, with a 1% spread, you’ll still be making a profit. So what are you waiting for? Sign up today and start trading!
Looking for a way to make deposits and withdrawals without any fees? Look no further than Webull. With ACH transfers, you can easily move money in and out of your account without added costs. In contrast, bank wire deposits cost $8 for each transaction. But with ACH transfers, there are no hidden costs or surprises.
Bitcoin is a digital currency that’s perfect for investing – and it’s more fun than you might think! With Bitcoin, you can make a profit while enjoying all the excitement and adventure of investing. So why wait? Start trading Bitcoins today!
Looking for the best Bitcoin trading platforms? Look no further! Our list is packed with the most reputable and reliable Bitcoin exchanges in the US. Whether you’re a beginner or an experienced trader, we’ve got something for everyone. So check out our top picks and start trading today!
Pros
- No commission on trades, ever
- No account minimums
- Open your account in just minutes
- Wide variety of tools for traders
- No fees trading crypto
Cons
- Crypto spreads start at 1%
- Too simplistic for seasoned traders
- Lack of mutual funds
- No support for e-wallets or debit/credit cards
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
3. Coinbase – Best Way to Invest in Bitcoin for Beginners
Even if you are completely new to the world of Bitcoin and blockchain technology – there is every chance you have heard of Coinbase. This is because the platform is not only home to approximately 89 million verified users, but it is now a tradable stock.
In fact, you’ll find Coinbase listed on the NASDAQ exchange with a multi-billion dollar valuation – which shows just how far the cryptocurrency broker has come since it was first launched in 2012.
In terms of what you get when choosing Coinbase as your go-to Bitcoin investment site – this largely centers around security and convenience. Regarding the latter, Coinbase accounts can be opened in a matter of minutes.
Once you’ve gone through a quick KYC process, you can then use your debit card to invest in Bitcoin instantly. Other instantly-processed payment methods available to US customers include Paypal and Apple Pay. ACH is supported, but expect to wait 1-3 working days for the funds to arrive.
Nevertheless, although you have the ability to invest in Bitcoin easily and quickly – Coinbase is super-expensive when it comes to commissions. In fact, by taking advantage of the instant buy feature with your debit card – you will pay 3.99% of the transaction amount.
As such, that’s almost $40 for every $1,000 invested. This is, of course, significantly more than eToro – which allows US customers to deposit funds on a fee-free basis. On the other hand, Coinbase does allow you to deposit funds with ACH for free.
But, you will still need to pay a standard commission of 1.49% on your Bitcoin investment. This commission is yet again applied when you get around to cashing out. If this fee structure doesn’t put you off, you will enjoy a super-secure and safe experience when using Coinbase.
The exchange notes that 98% of client funds are held in cold storage – so it’s virtually impossible for external hacking attempts to succeed. Plus, you’ll need to set up two-factor authentication (2FA) – which is another crucial safety net in keeping your funds safe.
Pros
- One of the most popular cryptocurrency exchanges
- Approximately 89 million verified users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
4. Binance – Best Place to Invest in Bitcoin for Asset Diversity
Binance is another popular online exchange that has an ever-growing customer base in the US. Globally, the exchange facilitates billions of dollars in daily trading volume and is home to over 100 million client accounts.
Perhaps the main two benefits of choosing Binance to invest in Bitcoin are its huge list of supported cryptocurrencies and its low fee structure.
Starting with the former, Binance offers hundreds of digital tokens in addition to Bitcoin. This covers everything from top-10 cryptocurrencies to small-cap DeFi coins. This is great for those of you that are looking to enter the Bitcoin marketplace in a more diversified manner.
That is to say, Binance is a great option should you wish to invest in a full range of crypto assets. In terms of fees, this will depend on how you intend on funding your Bitcoin investment. For instance, if you want to use a US debit or credit card to invest in Bitcoin, you will pay an instant buy fee of 0.5%.
This works out at $5 for every $1,000 invested. On the other hand, if you want to invest in Bitcoin by paying with an alternative asset – such as Ethereum or XRP, the commission on this trade would amount to just 0.10%. This commission can be reduced by 25% should you hold BNB tokens in your account – which is the crypto asset native to Binance.
When it comes to storing your Bitcoin investment – Binance offers two options. For the beginners in the room, you might consider leaving your tokens stored on the main Binance website. Security controls offered by Binance include 2FA, IP and device whitelisting, and its SAFU (Safe Asset Fund for Users).
The latter is a reserve pot that has been put in place to cover clients in the event of an external hack. The other storage option you have is to download the Trust Wallet. This is a mobile wallet backed by Binance that is available on both iOS and Android devices.
Unlike the previously discussed web wallet, Trust gives you full control over your private keys. This ensures that you, and only you, have access to your Bitcoin investment. Finally, Binance also offers a savings account that allows you to earn interest on your ideal digital tokens.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
5. Crypto.com: Buy, Sell, and Trade all your Favorite Coins in One Place
The Crypto.com App is the new gold standard in cryptocurrency investing and Bitcoin trading. Whether you’re looking to buy, sell, or invest in digital assets such as Bitcoin or Ethereum, Crypto.com has you covered – backed by the strongest security features in the industry.
With a user-friendly interface that makes it easy for anyone to get started with cryptocurrencies, the Crypto.com App is perfect for anyone looking to take control of their financial future.
Crypto.com offers the ultimate selection of cryptos, so you can always invest in the latest and greatest. So whether you’re looking to get started with cryptocurrencies or want to add new coins to your portfolio, Crypto.com has you covered.
Crypto.com makes it easy to stay on top of the market with informative charts, current prices, and in-depth info on all the most popular coins.
Crypto.com strives to make the complex world of cryptocurrency simple, accessible, and affordable for everyone. Crypto.com offers a simple way to track your crypto portfolio with the mobile app. You may see the value of your holdings at any time and even stake CRO to receive a premium metal Crypto.com Visa debit card! Plus, you will receive a better APR on Crypto Earn and Crypto Credit!
Looking for a way to earn extra cashback and rewards? Look no further than Crypto.com’s staking program! Simply stake your CRO tokens to enjoy increased benefits, depending on the card tier you’ve chosen. Plus, with Crypto Earn, you can even earn interest on your staked tokens! So why wait? Start staking today and start enjoying the rewards!
Crypto.com’s low trading fees of only 0.40% with a trading volume of up to $25,000 a month make it easy for new users to get started, and with volume-based trading fee discounts, you can keep your costs low. Plus, by paying your fees in CRO, you can save even more! In addition, Crypto.com’s team of experts is always here to help guide you through the world of cryptocurrency trading.
Looking to buy, sell, or trade Bitcoin? Look no further than Crypto.com! Crypto.com’s easy-to-use app and low 2.99% credit/debit card fee make it easy for you to get into the action! So start trading today and see the profits roll in!
The Staples Center is now the Crypto.com Arena, in a reported $700 million naming rights deal. The new sponsorship will see the arena renamed for 20 years, and it’s hoped that the move will help to promote crypto payments and awareness of cryptocurrency more broadly.
If you’re looking to stake your crypto and earn some rewards, then you’ve come to the right place! Our list of the best crypto staking platforms will help you find the perfect platform for you. So whether you’re a beginner or a seasoned pro, we’ve got you covered! So start staking today and see your profits soar!
Pros
- Buy and sell a wide variety of cryptocurrencies with low fees
- Earn cashback rewards and enjoy numerous privileges
- Invest in a portfolio of coins and tokens with just one click
- Earn interest on your crypto holdings
- Safe and Secure Transactions
Cons
- Fees are higher unless you own and utilize CRO
- Navigating can be difficult for beginners
- Inadequate client service
- Discounted trading fees can be difficult to understand
- Insufficient educational resources
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
6. Gemini: Secure, Trustworthy, and Regulated Bitcoin Exchange
Looking for a safe and reliable way to buy and sell Bitcoins? Look no further than Gemini – the brainchild of the Winklevoss twins. With Gemini, you can rest assured that your transactions are secure and your money is safe.
Gemini is one of the best Bitcoin exchanges that makes it easy for you to buy and sell BTC. With some of the most recognizable founders in the space, Gemini is dedicated to making your experience with cryptocurrencies as smooth and fast as possible.
So if you’re looking for a regulated Bitcoin exchange that sets the standard for safety and security, look no further than Gemini!
Looking to trade like a pro? Gemini’s ActiveTrader platform is your answer. With blazing-fast speeds and advanced charting capabilities, ActiveTrader will have you making trades like a seasoned pro in no time. So what are you waiting for? Get started today!
Gemini is your best bet when it comes to easy, no-fee deposits. With a wide variety of deposit options such as ACH or wire transfer and only a 3.49% fee for debit card deposits, Gemini makes it simple and affordable to fund your account and begin trading. So what are you waiting for? Sign up today!
Note that convenience fees are included in the quoted price of the crypto you are purchasing and are increased by 0.5% for buy orders. The transaction charge is determined by the currency and transaction volume.
Gemini ActiveTrader is the ultimate crypto trading platform designed to empower you to take charge of your trading career. With advanced charting, market and limit orders, and access to auctions and block trading, Gemini ActiveTrader gives you everything you need to succeed. So why wait? Start Trading with Gemini today!
If you’re looking to get into the world of cryptocurrency trading, you need a trusted resource to help you get started. That’s where our list of the best crypto apps comes in. From simple user interfaces to sophisticated analytical tools, these apps have everything you need to take your trading game to the next level. So don’t miss out – check out our list today and start trading like a pro!
Pros
- Add more diversity to your investment portfolio
- Intuitive features for a more efficient workflow
- A cutting-edge trading platform
- Earn daily interest for your crypto holdings
- High quality, reputable exchange
- Maintain peace of mind knowing that your assets are insured
- Makes you feel like a pro
- Create a portfolio that reflects your personality
Cons
- The fee structure is prohibitively expensive for modest trades
- Could be challenging for beginners
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
7. Kraken: Invest in Bitcoin, Ethereum, and More with Ease
Looking for a reliable Bitcoin exchange with serious security and speed? Look no further than Kraken. Kraken is one of the world’s most popular Bitcoin exchanges. With cutting-edge features and world-class customer service, you’ll be able to get the most out of your trading experience. So why wait? Sign up today!
Kraken’s user-friendly platform makes it easy for you to securely exchange cryptocurrencies with ease. Plus, two-factor authentication and email confirmations for withdrawals keep your assets safe and sound. So sign up today and experience the Kraken difference!
Kraken is the trusted name in crypto when it comes to safeguarding your assets. Significantly, 95% of all deposits are held in offline, air-gapped cold storage. In addition, Kraken’s advanced security features and secure cold storage ensure that your funds are always safe and accessible when you need them.
Kraken’s state-of-the-art security protocols will keep your money safe, while full reserves ensure that you can always access it when you need it. With Kraken, you can rest assured that your money is always within reach. So why not join the millions of others who have entrusted their money to Kraken? Sign up today and experience the peace of mind that comes with knowing your funds are in good hands!
Kraken is the perfect solution for anyone looking to trade crypto without paying high fees! With Kraken, you can trade Bitcoin, Ethereum, and dozens of other cryptos quickly and easily. Instant purchases cost 1.5% for the majority of coins and 0.9% for stablecoins utilizing USD or another stablecoin.
Kraken is the perfect way to pay for what you need when you need it. With various payment options, Kraken is the smartest way to pay. However, keep in mind that additional fees may apply based on the mode of payment used to complete the transaction.
Additionally, you’ll get access to powerful tools that will help you make the most of your trading experience. So if you’re ready to start trading cryptocurrencies without overpaying, Kraken is the perfect choice!
Trading on the Kraken Pro platform is an affordable and easy way to get started in the markets. With lower pricing that doesn’t require another account, traders can save money without sacrificing their trading experience or options!
Kraken’s Pro platform is the perfect tool for experienced traders who want to make the most out of their investments. Kraken Pro offers a wide range of features that let you lower your risk while maximizing your profits – so not only can you sleep soundly at night but also maximize what money has been earned!
Looking to invest in the future of cryptocurrency? Then you need Kraken! Kraken supports cryptocurrency futures trading, so you can get in the action early and make a fortune. With Kraken, you’ll be ready for whatever the market throws your way. So don’t wait any longer – sign up today!
Pros
- Low fees
- Easy to use and understand
- Simplify the process of exchanging many different crypto assets
- Trade in a safe way
- Earn rewards on staked assets
Cons
- Fees are prohibitively high for novices who use the Instant Buy platform
- Customer service is limited
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
8. Coinmama: Get Started with Bitcoin, Ethereum & Litecoin
Looking to invest in cryptocurrencies? Look no further than Coinmama. Coinmama offers a simple, easy-to-use platform where you can buy digital currencies like Bitcoin and Ethereum. Plus, if you’re looking to invest in Bitcoin, Coinmama is your best bet – they offer some of the best rates around. So what are you waiting for? Get started today and join the cryptocurrency revolution!
Looking for an easy and safe way to buy Bitcoin? Look no further than Coinmama. Coinmama never keeps customer funds or payment details – so you can rest assured that your coins are safe and always accessible.
By using Coinmama, you can gain complete control of your funds by using a third-party wallet of your choice. Buy Bitcoin today and experience the future of finance! Get started today and experience the convenience of Coinmama!
Coinmama offers competitive rates based on the market rate of TradeBlock’s XBX Index along with 2%, plus a commission fee of up to 3.81% when buying cryptocurrencies and up to 0.9% to sell bitcoin. So whether you’re new to the world of cryptocurrencies or a seasoned pro, Coinmama has you covered.
Customers who spend $5,000 over 90 days receive a 12.5% discount on their sales fee. In comparison, customers who spend $18,000 over 90 days or make a lifetime purchase of $50,000 or more receive a 25% discount on their sales fee.
Are you looking to maximize your savings? Look no further than the Coinmama Loyalty Program! The Loyalty Program offers automatic enrolment and incredible savings on commission fees. With three levels of savings, there’s something for everyone! So the more you buy or sell, the more you will ultimately save. So why wait? Start using Coinmama today and experience the power of loyalty.
Coinmama is the easiest way to invest in digital currencies. With exchange rates displayed in your local currency, you can easily choose the best alternative.
Looking for the best crypto signals? Look no further! Our comprehensive list includes only the top services, so you can rest assured you’re getting the best advice possible.
Pros
- No fees for cryptocurrency deposits or withdrawals
- Numerous payment methods
- Verification within minutes
Cons
- Higher fees than some other competitors
- No iOS mobile app
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
9. Bitstamp – Crypto Trading on Steroids
Bitstamp is the perfect place for investors looking to get into the cryptocurrency market. With a user-friendly interface and a wide variety of coins to choose from, Bitstamp makes it easy for anyone to invest in digital currencies.
Furthermore, with dedicated customer support, you can always rely on Bitstamp when you need help getting started. So don’t miss out – explore Bitstamp today!
Looking to trade crypto without spending a fortune in fees? Bitstamp has you covered! With our tiered fee structure, you can get the best deals on all your trades – no matter how big or small. Attention all crypto traders! Bitstamp offers the perfect solution for those looking to reduce their trading fees. With a flat rate based on your 30-day trading volume, you can save big on every trade.
There are a total of 17 tiers, with 0.50% being the highest. Your fees will reduce as you advance through the levels. A card purchase costs 5% of the purchase price in the form of an immediate service fee.
Plus, Bitstamp offers free deposits and withdrawals in the United States via ACH. Since deposits and withdrawals are free – you can get your hands on some BTC without spending a penny!
So whether you’re just starting out in the crypto world or are a seasoned pro, Bitstamp is the perfect place for you!
Pros
- Simple and easy to use
- Trade fiat money for different types of cryptocurrencies
- Accepts debit/credit cards and bank transfers
- Get a chance to make huge profits with minimal risk
- Feel like you’re getting in on the ground floor of something big
Cons
- Markets with a limited supply
- Lack of margin trading
- 5% surcharge on debit/credit card transactions
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
10. Bisq – Decentralized, Anonymous, and Secure
Bisq is the best decentralized Bitcoin exchange when it comes to trading cryptocurrencies. It’s decentralized, meaning you never have to worry about server downtime or crashes slowing you down.
With Bisq, you can trade with confidence, knowing that your transactions are always secure and anonymous. Plus, Bisq offers a high degree of anonymity and security, so you can trade with peace of mind.
Furthermore, Bisq is the perfect way to trade anonymously and securely on the go. With a 0.01 BTC security deposit, you can feel safe locking in a multi-signature escrow wallet while you’re out and about. Make private trades with people you’ve never met before – it’s the perfect way to stay safe while thinking on your feet.
Moreover, Bisq is an excellent way to make sure your next trade goes off without a hitch. With Bisq, you can be sure that your deposit will be delivered back to you in full when the trade is fully completed, no matter what. So why wait? Make your next trade with Bisq!
Bisq is the ideal platform for bitcoin traders of all levels of experience. Bisq’s unique fee structure ensures that you get the most bang for your buck, while their user-friendly interface makes trading a breeze.
Trading fees are calculated as a proportion of trade size: 0.1% for makers and 0.7% for takers in BTC, and approximately half of that in BSQ. With Bisq, you’ll always know exactly how much you’re spending. So come see what Bisq has to offer today!
Pros
- Decentralized exchange platform
- Numerous payment options
- High level of security and anonymity
- Trade crypto more securely
Cons
- Lack of regulation
- Insufficient tools for advanced traders
- High trading fees
- Inconvenient to use
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
How to Invest in Bitcoin in the US – Detailed & Explained in Full
The quickfire guide that we presented earlier explained that it’s possible to invest in Bitcoin in under five minutes when using eToro. However, if this is your first time using an online Bitcoin investment broker – you might need a more detailed walkthrough.
If this is the case, below you will find an in-depth tutorial on how to invest in Bitcoin in the US in a safe and low-cost manner.
Step 1: Open a Bitcoin Investment Account
The first step at eToro – as is the case with all legitimate Bitcoin investment brokers offering a service to US clients, is to register an account. End-to-end, this should not take you more than a couple of minutes. You will initially be asked to enter some personal details – which is inclusive of your first and last name, home address, and data of birth.
You’ll also need to enter your social security number, email address, and cell phone number. After confirming your phone number via an SMS code, your eToro account is open!
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Step 2: Upload ID
Another core requirement implemented at regulated brokers like eToro is a KYC (Know Your Customer)n process. In a nutshell, this requires you to upload a copy of your government-issued ID – so that eToro can verify your identity. You will also need to upload a document that verifies your US residency.
This can simply be a utility bill or bank statement. Other documents are accepted – so check out the list to find one that is most suitable for you. Once you upload the aforementioned documents, eToro will verify them in less than 1-2 minutes.
Step 3: Deposit Funds
Once the automated verification is complete, eToro will then ask you to make a deposit. As we noted earlier in our eToro review, the broker requires a minimum deposit of just $50 for US clients.
Furthermore, and perhaps most importantly, US clients benefit from 0% deposit fees. This is a huge saving when you consider that Coinbase charges 3.99% on Visa and MasterCard deposits!
In terms of supported payment types, eToro supports the following:
- Debit Cards
- Credit Cards
- Paypal
- Skrill
- Bank Transfer
Your deposit will be added to your eToro account instantly – unless you are opting for a bank wire (1-3 days).
Step 4: Search for Bitcoin
You will find dozens of digital currencies on the eToro website, so the easiest way to find Bitcoin is to search for ‘BTC’. When you see the correct market load (like in the image below) – click it. Next, click on the ‘Trade’ button.
This will populate an order form – which you will need to fill in to complete your Bitcoin investment.
Step 5: Invest in Bitcoin
As noted above, the final step is to complete an order form. At eToro – this only requires one piece of information from you – your total stake. This only needs to meet a $25 minimum and you can enter your desired stake into the ‘Amount’ box.
Finally, by clicking the ‘Open Trade’ button – eToro will instantly execute your Bitcoin investment. At any given time, you can head over to the ‘Portfolio’ section of your account to see how your investment is performing. Your portfolio is also where you will need to go when you eventually get around to cashing out your Bitcoin investment.
How to Sell Bitcoin in the US
It goes without saying that your primary goal of investing in Bitcoin is, of course, to make a profit. In a similar to way to buying traditional stocks, the only way that you can do this is if the value of Bitcoin increases in the open marketplace. If it does, and you want to cash out, you can do this by selling your Bitcoin tokens back to cash.
- Now, the process involved will ultimately depend on where you purchased Bitcoin and how the tokens are currently being stored.
- For example, if you used a third-party exchange and withdrew the Bitcoin out to a private wallet, then you will need to transfer the digital asset back to a broker that allows you to sell for fiat money.
On the other hand, if you followed our detailed tutorial and opted for eToro, the tokens remain on the platform at all times. This means that at any given time, you can access your Bitcoin investment via your portfolio and create a sell order.
As soon as you confirm the sale, eToro will exchange your Bitcoin back to US dollar. Then, it’s just a case of requesting a withdrawal back to your bank account or debit/credit card!
Ways to Invest in Bitcoin
The next thing to think about is the many ways to invest in Bitcoin. The specific method that you opt for will ultimately depend on your personal circumstances and preferred payment type.
To point you in the right direction, below we discuss the main ways to invest in Bitcoin in the US.
Regulated Broker
The easiest, cheapest, and most secure way of investing in Bitcoin is to use an online broker. With that said, the broker must be regulated by at least one reputable body and thus – have the legal remit to accept US clients. This will ensure that your Bitcoin investment is safe and secure at all times.
This is why we like eToro, as the platform is registered with FinCEN as a Money Services Business and also holds regulatory licenses with bodies in the UK, Australia, and Cyprus. By using a regulated broker to invest in Bitcoin, you don’t need to leave the comfort of your home.
As such, you will be able to pay for your Bitcoin investment with a number of convenient payment methods – with the likes of eToro accepting Paypal, debit cards, credit cards, and local bank transfers. You will also find that a number of regulated brokers in this space offer industry-leading fees. Once again, eToro permits 0% commission deposits and spreads of just 0.75%.
Bitcoin ATM
If you prefer dealing in cold-hard dollars – then you might consider a Bitcoin ATM. Put simply, these are ATMs that allow you to insert cash and in return – you will receive Bitcoin.
- As Bitcoin is a digital currency, you won’t, of course, receive your tokens in tangible form.
- On the contrary, most Bitcoin ATMs require you to scan your mobile wallet address.
- Then, once the transaction is complete, the Bitcoin tokens will be transferred over to your wallet.
- Some Bitcoin ATMs will instead print a receipt that contains details of how to claim your tokens manually.
Either way, the key issue with Bitcoin ATMs in the US is that they charge extortionate fees. Some of the providers that we came across charge as much as 15-20% of the transaction amount – which is huge.
This is why we much prefer regulated brokers like eToro – which are not only more convenient and cost-effective, but better suited for beginners.
Bitcoin Stocks
There isn’t such a thing as Bitcoin stocks. You do, however, have the chance to invest in Bitcoin-related stocks such as Coinbase. As we briefly mentioned in our Coinbase review, this popular cryptocurrency exchange is now listed on the NASDAQ exchange.
This means that by opening an account with a US-based stockbroker, you can indirectly invest in Bitcoin and other cryptocurrencies – simply by purchasing some Coinbase shares. Crucially, this is because there is a direct correlation between the stock price of Coinbase and the wide value of the currency market.
After all, Coinbase specializes exclusively in cryptocurrency brokerage services – so it makes sense that the company performs better when the health of the marketplace is strong.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Should I Invest in Bitcoin?
If you’re yet to invest in Bitcoin because you are uncertain whether it’s the right asset class for your portfolio – it’s important to take a step back. That is to say, like all investment-related decisions, you should perform lots of research before proceeding.
This doesn’t have to be anything overly complex like technical analysis of charting research. On the contrary, you simply need to look at the risks and potential rewards of Bitcoin to help you make an informed decision.
Below you will find some notable points that our research team found when considering the benefits of investing in Bitcoin.
New and Exiting Asset Class
Sure, Bitcoin has been around since 2009. But, in comparison to traditional assets like stocks or bonds – this is nothing. In fact, Bitcoin is still well within its early growth stage, so by entering the marketplace now – this will allow you to invest before the digital currency really takes off.
Huge Returns to Date
Had you invested in Bitcoin not long after the blockchain project launched in 2009 – you would have paid less than a cent. Since then, the digital currency has grown by a significant amount.
In fact, Bitcoin hit a new all-time high in May 2021 at just under $64,000. When you consider that the digital asset was worth around $5,000 in March 2020 – this translates into gains of over 1,100% in just over a year of trading.
Buy Small Amounts
On the one hand, buying a full Bitcoin will now set you back tens of thousands of dollars. But, the fact that cryptocurrencies can be split into tiny fractions means that you only need to invest a few dollars to enter the market. In the case of eToro, for example, you can invest in Bitcoin from just $25 per trade.
This means that if Bitcoin was valued at $25,000 – the minimum investment would see you own 1% of a single token. This is ideal from a risk-management perspective, as Bitcoin is highly volatile.
Trading Below All-Time High
The value of Bitcoin changes on a second-by-second basis – like most tradable instruments. With that said, as of Q3 2021, Bitcoin is still trading below its previous all-time high of $64,000.
As of October 19th 2021, the first Bitcoin Futures ETF launches today – setting a new milestone for the cryptocurrency industry. This catalyst towards mainstream acceptance now gathers global attention as Bitcoin Price began to break towards and above $63,000 once more.
BTC price broke above $68,000 as of November 9th 2021 and still struggles towards the $70,000 mark as it fights the resistance level. Bitcoin’s current price is $66,826.
What are the Risks of Investing in Bitcoin?
In the sections above, we discussed the many benefits of investing in Bitcoin for the first time. With that said, you also need to consider the risks before proceeding. This will ensure that you make an informed decision before you part with any money.
- Unproven: In the grand scheme of things, Bitcoin as an asset class is still relatively unproven. By this, we mean that it remains to be seen what role Bitcoin will play in the future of money. Furthermore, Bitcoin regulation is still in its infancy, so this is another metric that needs to be considered before investing.
- Volatile: Bitcoin is a very volatile financial instrument that will often increase or decrease by 5-10% per day. When things are going in your favor, this increased volatility can be highly rewarding. However, when market sentiment is bearish and the value of Bitcoin subsequently suffers, this can result in rapid losses. As such, if you’re unable to handle the volatility levels of digital currencies, Bitcoin might not be right for your portfolio.
- Cybercrime: Bitcoin and other cryptocurrencies are favored by cybercriminals due to the anonymous characteristics that the digital asset arena offers. In particular, this includes regular hacking attempts of cryptocurrency exchanges and wallets. Although these risks cannot be eliminated entirely, this is why we strongly suggest that you only invest in Bitcoin via a regulated broker.
In considering the above risks before investing in Bitcoin, this will ensure that you enter this marketplace with your eyes wide open.
How Much Does it Cost to Invest in Bitcoin?
Just like when you buy traditional assets such as stocks or bonds, you will need to pay fees to invest in Bitcoin. The specific fees are entirely dependent on your chosen Bitcoin broker.
For example:
- Deposit Fees: You will usually need to pay a deposit fee when you fund your Bitcoin brokerage account. For example, you will pay 3.99% to invest in Bitcoin with your Visa or MasterCard at Binance. You can find brokers that offer much lower fees in this department, though. This includes eToro – which allows US citizens to deposit funds fee-free.
- Spreads: The spread is essentially a mark-up that the broker implements on the buy and sell price of Bitcoin. For example, if the buy and sell price is $45,000 and $46,000 respectively, the spread in this instance amounts to $1,000. In simple terms, this means that you will need to make gains of $1,000 to break even on your Bitcoin investment.
- Commissions: You then have the trading commission, which is charged every time you invest in Bitcoin and again when you cash out. At Coinbase, this amounts to 1.49%. eToro doesn’t charge trading commissions. Instead, the broker charges a competitive spread of just 0.75%.
How to Buy Invest in Bitcoin – Conclusion
If you’ve read our guide from start to finish – you should now know just how easy it is to invest in Bitcoin in the US.
In fact, as our step-by-step tutorial explained, the end-to-end process should take no more than five minutes. However, you do need to do a bit of research before getting started, especially when it comes to choosing the right broker.
All in all, we found that eToro offers the best Bitcoin investment service to US clients. Not only can you deposit funds for free with a debit/credit card, Paypal, or bank transfer – but the minimum investment is just $25 per trade.
Furthermore, eToro is registered with and approved by FinCEN – you can be sure you are using a top-rated brokerage that does everything by the book.
1
Mobile AppYes
FAQs
How to invest in Bitcoin in the US?
Where to invest in Bitcoin
Should I buy Bitcoin?
How do you safely invest in Bitcoin in the US?
How do you cash out Bitcoin in the US?
